There are some new concerns starting to emerge around the merger between Nissan (NSANY) and Honda (HMC), and not just those brought up by Carlos Ghosn. In fact, the new concerns are sufficient that investors started a minor panic, bolting for the exits and sending Nissan shares down over 8% in Monday afternoon’s trading.
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The reports note that the deal between Nissan and Honda could feature a deeply unpleasant component: a five-to-one share transfer ratio. If that ratio actually comes to pass, Nissan would likely indeed be the “junior partner” of sorts that Carlos Ghosn warned about, and Nissan’s investors would end up with a much smaller share of the new company than they may have expected.
But even if the merger does not go through, noted reports, that does not mean that Nissan and Honda will not be working together in other ways. Reports noted that Nissan is looking to potentially “collaborate” with Honda, and is currently in the process of discussing what these collaborative efforts will actually look like. And then there are some concerns from regulators involved as well; former Federal Trade Commissioner Mozelle Thompson, during an interview, noted that no one as yet really knows what this merger will even look like, so it is hard to say how much concern regulators will have.
Rolling Out Some New Models
But Nissan is not sitting on its hands ahead of a deal, whether or not it actually goes forward. Nissan Technical College students have prepared three new Nissan builds ahead of the Tokyo Car Salon, and will bring them to the event.
The three new builds are known as the NEO Skyline, Z Lealia, and Bluebird Kiwami, noted a Hypebeast report. The NEO Skyline is a revised version of the Kenmary Skyline, while the Z Lealia goes for the “family car” aesthetic, and is based on the M35 Stagea. Finally, the Bluebird Kiwami is based on the PU11 Bluebird Maxima, but given a “luxurious yet sporty” new appearance. Whether any of these will see the light of day beyond a car show, however, remains to be seen.
Is Nissan Stock a Buy or Sell?
Turning to Wall Street, no analysts currently carry a rating on NSANY, so we turn to the last five days of trading instead. Shares are down 14.07% over the period, and feature mostly flat trading days followed by some bit of terrible news that sent shares into freefall, before leveling off again ahead of the next freefall.
